Key Insights
- •Ethereum price jumped more than 6%, indicating strong confidence from traders.
- •Ethereum whales have accumulated approximately 800,000 ETH.
- •Analysts predict an Ethereum price rally to $3,700 and potentially beyond if a key resistance level is cleared.
The price of Ethereum experienced a significant jump of over 6% today, coinciding with a positive shift in the broader cryptocurrency market sentiment as the US FOMC interest rate decision approaches.
This robust surge in ETH price has notably outperformed Bitcoin and other altcoins, further boosting optimism among traders.
The increase in the second-largest cryptocurrency by market capitalization appears to be driven by aggressive buying pressure from large investors, often referred to as whales, as well as continued investment from corporations.
Simultaneously, sustained institutional interest in Ethereum may have further bolstered market confidence.
For context, the US Spot Ethereum ETF has continued to witness substantial inflows this week, signifying renewed confidence among institutional investors.
Amid these developments, market participants are evaluating the potential for the Ethereum price rally to sustain throughout the final month of the year.
Although ETH price has historically shown mixed returns in December, recent market trends suggest a potentially bullish outlook for the asset this month.
Top Reasons for Ethereum Price Surge
Ethereum's price has surged past the $3,300 mark, recording an increase of over 6% in the last 24 hours. Its trading volume has also seen a significant rise, jumping 57% to $34 billion.
Data from CoinGlass indicates that Ethereum has historically offered an average return of 7% in December since 2016.
This year, the cryptocurrency has already gained nearly 11% by December 10, suggesting strong interest from traders.
The current surge can be attributed, in part, to buying pressure from large investors, or Ethereum whales.
In a recent post on X, analyst Ali Martinez highlighted this trend, citing data from Santiment. According to Martinez, ETH whales have accumulated over 800,000 coins within the past month, signaling their long-term confidence in the asset.
In parallel, the US Spot Ethereum ETF has continued to attract renewed interest from institutions.
According to Farside data, the US Spot ETH ETF has experienced a two-day inflow streak, with total inflows amounting to $213 million over the past two sessions.
Furthermore, expectations of a Federal Reserve rate cut are anticipated to boost overall market sentiment, which could help sustain the rally for Ethereum.
Future Outlook for ETH Price
The increasing confidence of Ethereum investors is further evidenced by a recent significant move from an ETH whale.
Analyst Ted noted that a whale has opened a $38.3 million long position on ETH with 7x leverage, indicating strong conviction in the future potential of Ethereum's price.
This whale's position is substantial, with a liquidation price set at $2,907. If ETH falls to this level, the position would be automatically closed to cover the loan.
Amid this activity, analyst Ted suggested that if Ethereum's price can reclaim the $3,400 level, it could continue its upward trajectory towards $3,700.
However, Ted also cautioned that a rejection from the $3,400 level could trigger another price drop to $3,100.